BBB- for company notes

BBB- for company notes

SYDNEY (Reuter): Standard & Poor's Corp said it had assigned a BBB minus senior rating to PT Jawa Power Co's US$200 million senior secured notes due 2011 in the U.S. institutional private placement market.

S&P said the rating was assigned after an assessment of the risks that apply to the 2x660 MW coal-fired power station at the Paiton Energy Complex in East Java, Indonesia.

The coastal power station will be constructed at a cost of US$1.7 billion by a consortium of Siemens AG, Powergen Plc, and PT Bumipertiwi Tatapradipta, which in turn is indirectly controlled by PT Bimantara Citra Holding.

S&P said the risks applying to the project include the fact that the construction project will take four years, logistical challenges, fuel supply requirements, and financial uncertainty about one of two mine operators.

S&P said the outlook for the investment-grade project is stable.

"The inclusion of highly capable and creditworthy sponsors and fundamentally sound economics allow Standard & Poor's to conclude that the project will move into commercial operation on time, on budget, and as designed," the statement said.